Middle East Markets Rattle Amid Tariffs and Oil Price Drops

Middle East stock markets experience turmoil due to new U.S. tariffs and a significant drop in oil prices. The decline in Brent crude affects energy-dependent economies like Saudi Arabia, exacerbating regional financial instability. Shared concerns include unpredictability in global trade and the impact on major companies like Aramco.

The stock markets across the Middle East faced significant setbacks on Monday, grappling with the dual pressures of fresh U.S. tariffs and plummeting oil prices. This has delivered a substantial blow to energy-rich nations heavily reliant on crude sales to fuel their economies and public expenditures.

The benchmark Brent crude has seen a drastic fall of nearly 15% over the past five trading days, with the cost per barrel now slightly above $63, a stark contrast to the over $90 a year ago. This price dip hits below the critical break-even level for countries like Saudi Arabia, intensifying the economic squeeze as tariffs of 10% imposed by the U.S. hit Gulf Cooperation Council states, while nations like Iraq and Syria face even steeper rates.

Panic swept the region as the Dubai Financial Market exchange plunged by 5%, while the Abu Dhabi Securities Exchange saw a 4% drop. Saudi Arabia's Tadawul stock exchange dropped over 6% in value, with Aramco's shares down more than 5%, eradicating billions from its market cap. The broader geopolitical financial landscape faces further complications as Pakistan grapples with a 2.5% market drop amid looming 29% tariffs.

(With inputs from agencies.)